• BullionStar
    05/30/2016 - 21:24
    The US Gold Market is best known as the home of gold futures trading on the COMEX in New York. The COMEX has a literal monopoly on gold futures trading volumes worldwide, but very little physical...

Market Snapshot - What Happened?

Tyler Durden's picture




 
0
Your rating: None
 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 09/12/2011 - 17:54 | 1661537 max2205
max2205's picture

TD can you post the return of just going long the last 30 min? I think it's about 200% in the last 4 weeks

Mon, 09/12/2011 - 18:02 | 1661566 The Peak Oil Poet
The Peak Oil Poet's picture

 

Greek short term Bonds were trading at over 100% yield

 

meaning that "everybody" expected default

while that was happening every man and his dog has been secretly buying Greek short term bonds dirt cheap (ie the big funds dump them while their managers buy them)

that's why gold has been dropping lately

so oh gee sudenly there's a rescue (again)

and everyone cashes in and then ploughs it back into - gold

 

pop

 

Mon, 09/12/2011 - 18:20 | 1661620 Snidley Whipsnae
Snidley Whipsnae's picture

"There are no markets, just interventions."

Chris Powell, GATA

"The pampered princes on Bloomberg today suggested there was selling of gold to 'raise capital' today, and that selling was being done by 'central banks.' Perhaps they need to meet some margin calls. lol.

You just can't make this stuff up."   Jesse

http://jessescrossroadscafe.blogspot.com/ 

Mon, 09/12/2011 - 18:33 | 1661653 TwelfthVulture
TwelfthVulture's picture

It wasn't just Bloomberg.  I saw this all morning.  All over the web, headline after headline, implying that gold was down due to selling to cover equities.  I mean, who the hell sells a profitable position to back up a losing position?  When AAPL goes down, does anyone suggest that investors are selling Apple to protect their Sino-Forest positions?

Mon, 09/12/2011 - 18:44 | 1661688 Snidley Whipsnae
Snidley Whipsnae's picture

MSM is programmed to talk down PMs, and that is what they are doing...

But, nothing has changed. The fundamentals that were in place are still in place and are worsening day by day.

The central banks and soverign govs are continuing to play for one more day in the sun.

No one in power wants this slow motion train wreck to culminate on their watch... If it did the body count would begin and that number will be awsome...Many, many wealthy bond holders and equities holders and all associated institutions will be wiped out. So they kick the can again and print, print, print.

I believe that central banks are so desperate that they are now resorting to selling gold which they have accumulated over the past few years... in an attempt to keep gold from reaching $2K per oz. This is an 'all in' play for central banks for when their fiat scheme fails these central bankers, their institutions, their jobs, their reputations, all go away. They are desperate and fighting for their lives... With our soverign gold.

Mon, 09/12/2011 - 19:16 | 1661761 ManufacturedOpinion
ManufacturedOpinion's picture

Isn't this options expiry week for stocks?

They're probably just "pegging the number" for Friday on the ETF's.

Mon, 09/12/2011 - 20:36 | 1661949 DeadFred
DeadFred's picture

In poker this would be a good time to call the bluff. Short term the only thing that will save this market is the 'for real' Chinese. Long term even they can't save it. When there are too many shorts you can expect the bankster to act like banksters. I think this turns by the end of the week. Watch for the news to change toward 'Maybe we have bottomed and this is the real recovery rally, blah blah blah' then the rug gets pulled out.

Mon, 09/12/2011 - 18:51 | 1661702 Everybodys All ...
Everybodys All American's picture

John Paulson has been mentioned.

 

Mon, 09/12/2011 - 19:10 | 1661744 Manthong
Manthong's picture

This might make for an interesting thread..  It might be instructive to review side by side charts of the SPX and the DJI from today..

I'm looking at them and I have a hard time believing I am not seeing double...  the (relative) high and low ticks at 15 minutes and volumes are almost PRECISELY identical - to the minute - for the entire day.

Is there some technical reason for this?

I've seen the stepped pump in the last hour a number of times, but both indexes precisely in alignment??? 

I can think of one fundamental reason in particular, but I can't believe it could be so obvious.. or careless.  

Mon, 09/12/2011 - 19:24 | 1661777 TwelfthVulture
TwelfthVulture's picture

It's like that most days these days.  The NASDAQ also, but you sometimes have to adjust the y-axis.  (apologies, misread your post.  i'm talking general, i did not notice the exact movement you mentioned.)

What I find particularly "deja vu"-ish is that, ignoring the end of day melt-up, for the past week or so gold and silver moved down in tandem with the indices.  I have not seen that since the 2008 sell-off.

Mon, 09/12/2011 - 20:17 | 1661866 Manthong
Manthong's picture

Maybe I am doing something wrong? 

The charts are scaled appropriately I think.

At each 15 minute mark, the direction and proportion of the movement looks the same.

The melt up is the same as a week ago Friday, only over 45 minutes rather than 30.

 

Mon, 09/12/2011 - 20:24 | 1661903 TwelfthVulture
TwelfthVulture's picture

Oh, yeah.  You're seeing what you think you're seeing.  And you're right, it's getting tighter and tighter.  The next thing I expect to see (and it seems to be beginning) is everything moving together, equities, bonds, pm's.  All up or all down.  The only thing I haven't seen yet that I saw before the 2008 crash is Treasury yields AND prices moving in the same direction.  I remember watching it happen several times in the lead up to Lehman.  To this day, it's like an alien abduction or something, I can't really believe that I saw what I saw.

Mon, 09/12/2011 - 21:03 | 1662040 Ned Zeppelin
Ned Zeppelin's picture

If the traders were human, it owuld be suspicious, but since they are only computer programs, be surprised at nothing. 

Mon, 09/12/2011 - 18:35 | 1661657 Chaffinch
Chaffinch's picture

Jim Wyckoff at Kitco normally explains drops as 'profit taking' (to cover losses on equities or margin calls). Always a mystery to me why the 'profit takers' just keep on hammering away trying to drive down through key support levels...

Mon, 09/12/2011 - 19:34 | 1661799 TwelfthVulture
TwelfthVulture's picture

I know what you're saying it just makes no sense.  If I'm long AAPL and Sino-Forest, I sure as shit am not going to sell my AAPL so I can hold onto Sino-Forest.  And you don't get margin calls on a single position, you get them on the portfolio, so again, if Sino-Forest is dropping so fast that it is generating a margin call on an AAPL, Sino portfolio, I'm dumping the Sino-forest long before that happens.

Mon, 09/12/2011 - 20:41 | 1661961 DeadFred
DeadFred's picture

You, thankfully, are not a robot or bankster working for the dark side of the force. That explains most of the difference.

Tue, 09/13/2011 - 05:28 | 1662843 Chaffinch
Chaffinch's picture

Ah but we're dealing with bears here. Bears won't dump on their Apples because they can eat their Apples; given the choice a Bear will shit in the Sino Forest part of his portfolio.

Mon, 09/12/2011 - 18:06 | 1661578 Smiddywesson
Smiddywesson's picture

perfectly normal price action I can assure you.

Mon, 09/12/2011 - 18:12 | 1661591 Soul Train
Soul Train's picture

yep, a lot of short covering these past few weeks in the last 30 min.

Today, it was panic covering to take profits.

Mon, 09/12/2011 - 20:24 | 1661901 scatterbrains
scatterbrains's picture

I like to think this whole flag formation is weak shorts getting worked off. The event that triggers the big move will occur overseas obviously. Our equity tape here in the states will snap and those lone shorts that held in will get paid. I expect most peeps to be shaken out of their shorts, caught with their thumbs up their ass when it happens.

 

Mon, 09/12/2011 - 18:18 | 1661611 supersunken
supersunken's picture

Didn't the same movement happen last Tue when rule 48 was in effect, Dow was down for most of the morning then came back...next day market jumped even higher. 

Mon, 09/12/2011 - 17:55 | 1661539 buzzsaw99
buzzsaw99's picture

with each passing day the wolf has fewer sheep to chase around.

Mon, 09/12/2011 - 18:06 | 1661577 dwdollar
dwdollar's picture

With each passing day a boomer dies and the kids withdraw their inheritance in order to survive.  The clock is ticking...

Mon, 09/12/2011 - 18:22 | 1661631 Tinsu
Tinsu's picture

You can't imagine how true that is. 

Mon, 09/12/2011 - 18:29 | 1661646 Rainman
Rainman's picture

Inheritance....what the hell is that ?? Blow it all bitchez !

Mon, 09/12/2011 - 19:15 | 1661755 Dave
Dave's picture

Told my son that very thing. You're on your own boy. Me and yo momma are going sailing.

Mon, 09/12/2011 - 19:28 | 1661790 BDig
BDig's picture

I was given the same lesson implicitly by my parents.  And I agreed until I had children of my own.

To me, money is a tool to buy, not items, but freedom.  Money is the ticket out of serfdom/slavery whatever you want to call it.  It's what enables some people to be an artist and not worry about starving.  Or be a philosopher and need not worry about publishing.  I hope to buy not only my own way out, but also my kids.  That's a big bill though depending on the quality of life you want to enjoy and the price of a slave 20 years from now.

Mon, 09/12/2011 - 20:30 | 1661927 Bicycle Repairman
Bicycle Repairman's picture

Here, here.  If you had kids just to turn them into slaves, you are not my countryman.  Be gone.

Mon, 09/12/2011 - 21:31 | 1662136 fasTTcar
fasTTcar's picture

The goal is to live life big enough that the cheque to the undertaker bounces.

Mon, 09/12/2011 - 23:41 | 1662496 Hulk
Hulk's picture

So true...

Mon, 09/12/2011 - 21:04 | 1662047 Ned Zeppelin
Ned Zeppelin's picture

Seems like once Europa closes the US PPT gloves come off, that is for sure. 

Mon, 09/12/2011 - 17:55 | 1661541 Xibalba
Xibalba's picture

ponzi chit

Mon, 09/12/2011 - 17:55 | 1661543 treemagnet
treemagnet's picture

Unicorns can't shit skittles everyday much less on command.  Tomorrow's still coming.

Mon, 09/12/2011 - 17:58 | 1661544 Theta_Burn
Theta_Burn's picture

What just happened to all the major currencies?

 

http://finviz.com/futures_charts.ashx?t=ALL&p=m5

Mon, 09/12/2011 - 17:59 | 1661556 max2205
max2205's picture

Finviz burbs this time of day

Mon, 09/12/2011 - 21:03 | 1662041 Hephasteus
Hephasteus's picture

Gold is higher than platinum. That is crazy.

Tue, 09/13/2011 - 05:36 | 1662850 Chaffinch
Chaffinch's picture

Gold has been higher than platinum before; trouble is, the price of Gold has been held down for a very long time. Gold is starting to come up towards it's real value. Platinum is very useful stuff, no doubt about it, but it can't compete with Gold's function as a currency - and the world needs a currency it can rely on like never before in history.

Mon, 09/12/2011 - 17:58 | 1661551 Flakmeister
Flakmeister's picture

Todays action might have the been worst of the past 6 months....

Mon, 09/12/2011 - 17:58 | 1661552 dasein211
dasein211's picture

Like i said earlier today. Too scared to challenge the QE train/ cb intervention and too scared to go all in becase of debt/defaults. DEER. IN. THE. HEADLIGHTS.

Mon, 09/12/2011 - 17:59 | 1661555 LookingWithAmazement
LookingWithAmazement's picture

Bye bye eurocrisis. Even Germany and France can easily bailout their banks. All the doomers can go asleep again, after selling their gold and silver, which are now plunging. Ok, let the next boom(-bust) cycle begin. War is over, merry Christmas everyone.

Mon, 09/12/2011 - 18:02 | 1661567 TruthInSunshine
TruthInSunshine's picture

The mere fact, alone, that you put Germany & France in the same category regarding the ability to "bail out their banks" is prima facie evidence of your idiocy.

Mon, 09/12/2011 - 18:21 | 1661626 LookingWithAmazement
LookingWithAmazement's picture

France has 14 billion to pay when its banks write off Greece bonds. That's all. Sleep well.

Mon, 09/12/2011 - 18:31 | 1661648 BetTheHouse
BetTheHouse's picture

Well. I would, but your sister ... Jesus!  She won't leave me alone!  Now .. what were saying about the banks?

Mon, 09/12/2011 - 18:49 | 1661698 Snidley Whipsnae
Snidley Whipsnae's picture

"France has 14 billion to pay when its banks write off Greece bonds."

Don't make me laugh... For $14Billion Germany and now England would not be attempting to ring fence their banking sectors.

Mon, 09/12/2011 - 19:12 | 1661739 TwelfthVulture
TwelfthVulture's picture

Dude, you forget to mention all the counterparty CDS's that French banks have against Greek banks who will be subsequently wiped out by a Greek default?  What about all the GREEK bonds held by French banks that will be wiped out by a subsequent Greek default?  What about all the Greek MORTGAGES held by French banks that will be wiped out by a subsequent Greek default?  What about all the counterparty CDS's that French banks have against GERMAN banks who have counterparty CDS's against Greek banks who will be wiped out by a subsequent Greek default?  What about all the counterparty CDS's that French banks have against Italian banks that will be wiped out by a Greek default which will itself neccesitate an ITALIAN default?  Do you see where this is going?

 

Mon, 09/12/2011 - 21:20 | 1662097 Threeggg
Threeggg's picture

He doesn't count this "stuff"

Ignorance is Bliss you know !

Mon, 09/12/2011 - 20:32 | 1661933 Bicycle Repairman
Bicycle Repairman's picture

Portugal? Italy? France?

Mon, 09/12/2011 - 18:36 | 1661660 Smiddywesson
Smiddywesson's picture

Oh, I wouldn't be so hasty to denounce someone for idiocy when idiocy rules the day.  

I don't usually post my trades, but I posted that I was going to cash on Friday because TPTB are cornered, and being the vicious little vermin that they are, they are going to use every dirty trick in their posession to keep gold below $2000.  That trade worked out, because gold had every reason to rise, and yet I went to cash just before it dropped.  Probably a coincidence (wink).  

I have a lot of money in an IRA, and a lot in physical, but I have done a lot of soul searching and believe that FOFOA is right, the decoupling of paper gold and physical gold will necessitate a drop in paper gold prices prior to a real valuation of gold.  This is a watershed event for me, because I always thought gold would rise based on the fundamentals  (despite overpowering manipulation)  but gold prices are not related to fundamentals, gold prices are PAPER prices, minus minus manipulation, and then they are affected by the fundamentals.  What I missed in my analysis is that there is a price to pay for all of this manipulation, and even though Eric Sprott and others with physical funds emphasize the physical backing of the funds, when the cascading collapse of the decoupling occurs, will these funds stop trading or follow the paper price down?  ZH readers, help me here, do any of these funds have a decoupling provision??????????????????  

The only safety is physical.  I am withdrawing all my 401K funds and buying physical.  In this market, even if you are right, you will still be wrong if you don't hold physical.  Appologies to Eric Sprott if anybody thinks that is a criticism of him, it's not, he's the real deal. 

Mon, 09/12/2011 - 20:03 | 1661825 Chaffinch
Chaffinch's picture

I have read some of Another's thoughts, and some of what FOFOA says about Freegold / price decoupling and I am trying to understand how it will happen. The only historical example I know of is when the US Govt revalued (physical) gold overnight from 20.67 (those were the days huh?) to 35.00. A 70% hike. But FOFOA is talking about as much as a 100 fold increase. If the principal of an overnight revaluation works then I guess the level of increase could be anything appropriate. So I guess paper gold in this example would have been left at 20.67, for the purposes of working out who owes who how much (in fiat currency). But these days I imagine the de-coupling would work differently, and lawyers would be heavily involved. TPTB could close all the paper and physical markets for as long as it takes to sort out the huge mess. All the holders of paper gold would have counter parties (and some would have long chains of inter-linked counter-parties) and GLD holders would probably sue via a class action. I am guessing a senior judge somewhere would set a value of $x for the value of paper gold at the point where the markets closed. I reckon (a) by the time he makes his decision the value of physical could have risen a whole lot more (and/or the value of the fiat dollar would have become worth even less) and (b) he will discount the value of paper gold versus physical because it will have been demonstrated to him by lawyers acting for the counter-parties that the investors who bought paper gold had the option of investing in physical but chose paper because they wanted leverage, or to avoid storage fees etc, so only right that they should be worse off than holders of physical. But I don't think he could discount hugely - maybe if physical had shot to 10k then he could value paper gold at 8k - but these are wild guesses. However we don't know who the counter-parties might be (especially where there is a long chain of counterparties) and some of them might be unable to pay in which case there would be defaults, possibly without any viable legal remedy, and even if there was a legal remedy it could take years to get it sorted out. The lawyers would make a fortune, so would all the 'expert witnesses' from the LBMA, Comex etc. And if what we read is correct, there might be 100 people with competing claims over the same physical, in which case what is a judge to do, except listen to all of the claimants and then either choose the one in a hundred with the best claim (the one who has the oldest claim on it perhaps?), or split the physical into 100 portions and divvy it out.

Mon, 09/12/2011 - 21:06 | 1662057 Ned Zeppelin
Ned Zeppelin's picture

I think in the US it is OK to be in cash (for now - BTFD in PMs) and gold. the rest is nonsense. 

Do NOT follow this link or you will be banned from the site!